The best results come when you plan carefully. This is what Michigan’s Integrated Resource Plan (IRP) process is all about.

In this blog, we’ll explain what an IRP is and why it’s important. The bottom line is that the IRP process is central to powering our state—and our economy—for the long term and helping us reach our statewide goal of net zero carbon emissions by 2050.

What is an Integrated Resource Plan (IRP)?

Under Michigan’s bipartisan 2016 energy law, Michigan’s electric companies must file an IRP with the Michigan Public Service Commission (MPSC)—our state’s regulator for electricity and natural gas providers—at least every five years. IRPs are developed and filed only after an electric company gathers significant input from its customers, stakeholders, and the communities that it serves. Every IRP must lay out how an electric company plans to provide affordable, reliable, and increasingly clean electricity to households and businesses over the next 5, 10, and 15 years.

Once an IRP is filed, the MPSC launches an administrative proceeding to examine the IRP and review public comments. The MPSC may approve an IRP or reject it—and provide 60 days to submit modifications. This process can take about a year.

In the past eighteen months, Michigan’s two largest electricity providers, Consumers Energy and DTE Energy, have filed IRPs with the MPSC. Consumers Energy filed its most recent IRP in June 2021, and DTE Energy filed its new IRP in November 2022. The two companies’ IRPs are broadly aligned: Both forecast the retirement of coal-fired power plants, increased construction of renewable energy facilities, and the use of natural gas to support reliability.

Planning for Reliability, Affordability, and Sustainability

The IRP process is not unique to Michigan. IRPs are required in more than 30 states, and many other states have other planning requirements for electricity providers. The IRP process enables governments and electricity providers to work together to meet the needs of all consumers and businesses—and fulfill the requirements of state energy laws. Three core goals form the foundation of the IRP process:

Reliability—Electricity providers must provide a detailed plan for generating and delivering safe, reliable electricity over the long term. This means they must plan to add new generation and distribution capacity to meet growing demand and offset the retirement of older power plants.
Affordability—Electricity providers must develop the most cost-effective strategies so that they can provide electricity at affordable rates for all customers over the long term.
Sustainability—Michigan has the bold goal of reaching net zero carbon emissions across the economy by 2050. IRPs must detail how an electricity provider plans to reduce carbon emissions while continuing to provide reliable, affordable electricity.

Next Up… What’s In DTE Energy’s IRP?

In its recently filed IRP, DTE Energy announced a strategy to make significant new investments in renewable energy and further cut carbon emissions by accelerating the closing of its last coal-fired power plants. DTE Energy’s new IRP also projects savings of $1.4 billion over its 2019 IRP.

In the next AMP blog, we’ll dive more deeply into DTE Energy’s IRP. We’ll examine how the plan will meet the goals of providing safe, reliable, affordable, and clean energy in the years ahead. We’ll also consider how DTE Energy’s proposed clean energy investments will support Michigan’s economy and job growth.

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How the IRP Process Impacts Michiganders

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